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The new law on public procurement will give more grounds for rejection of а tenderer

The Law “On Public Procurement” was developed in order to accelerate putting the country’s economy on a wartime footing, however, its introduction will affect the tenderers of public procurement. Now it has become easier to reject a company’s application for such a tender.

How does it work in the Prozoro system?

In the Prozoro system, the customer (in this case, the state company) undertakes to publish information about the rejection of the application for participation in the tender within one business day from the moment of such a decision. In addition, information about the decision should be kept in the customer’s protocol on the consideration of tender applications.

In the Prozoro system, a company whose offer was rejected, has the opportunity to get acquainted with detailed information about the reasons for such a decision. The references to relevant legislative acts and justification of the made decision shall be present.

You can appeal directly to the customer

If your tender offer was rejected, but you believe that the decision is insufficiently reasoned (or it is not sufficiently described in the available protocol), you get the right to appeal directly to the customer. You can find out the reasons why your tender offer does not correspond to the procurement program using the Prozoro system. The answer shall be issued no later than five calendar days from the moment of sending the request for a detailed explanation of the reasons for the rejection of the offer.

The new law on public procurement will give more grounds for rejection of а tenderer

You are a tenderer. Grounds for the customer to withdraw your participation

The previous situation (rejection at the tender offer filing stage) was regulated by the Article 31 of the law. If you are already bidding, the circumstances of your rejection may be different. The new law introduces the following grounds for withdrawing participation in a public procurement tender:

  • the procurement item does not meet the technical requirements regulated by the tender documentation;
  • discrepancy between the language of the documentation and the language stipulated by the tender;
  • expiration of your offer
  • you, as a tenderer, do not meet the qualification criteria specified in the Article 16 of the Law “On Public Procurement”, and/or there are grounds provided for in Article 17, paragraph 1 of this Law;
  • you, as a tenderer, do not meet the criteria from the first indent of part 3, Art. 22 of the law;
  • tender offer contains unreliable information (material), which was revealed in accordance with paragraph 15, part 29 of the article;
  • you, as a tenderer, have not secured the tender offer, or it does not comply with the conditions of the tender;
  • you, as a tenderer, after submitting request to eliminate discrepancies in the tender offer, do not meet them within 24 hours (according to the new law, the tenderer has 24 hours to correct any discrepancies);
  • you, as a tenderer, have not provided a justification for the extremely low bid price within the period specified in paragraph 14, Art. 29. We remind you that according to the law the price or the most favorable commercial price should not differ by more than 40% either way from the arithmetic mean price or the most commercially advantageous price to other tenderers at the first stage and more than 30% either way at the second stage. The price discrepancy is automatically calculated by the Prozoro system, and it sends appropriate notifications to both you and the customer. As in the case of other inconsistencies, you are given a day to correct the price;
  • you, as a tenderer, have declared confidential information that, according to the tender documentation, cannot be considered confidential in accordance with part 2 of Article 28 of the Law “On Public Procurement” (price, technical specifications, availability of certification documentation, other important technical information);
  • if you won the tender, but did not sign the procurement contract or refused to sign the procurement contract under the conditions regulated by the tender documentation in which you won;
  • you, acting as the winner of the procurement tender, did not provide in the manner specified in the tender documentation the records confirming the absence of the circumstances established by Article 17 of the Law “On Public Procurement”;
  • you, acting as the winner of the procurement tender, did not provide a copy of the license or other permit, if required in accordance with paragraph 2 of Article 41 of this Law. In this case, the customer will be forced to remove you from the tender, despite the fact that you are the winner, as well as on the previous two paragraphs.
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